@sprwn is relying on what the @SEC_News said about me in response to #XRPHolders motion to intervene. I quoted an old adage in my reply brief:

“When You Resort to Attacking the Messenger and not the Message, You Have Lost the Debate.”

Many people didn’t read the reply brief.
But considering @sprwn has used the SEC as his only source in his unprovoked attack of me, I will quote my response to the SEC’s attack so that it is in proper context for those that are unaware:

“The SEC has attempted to portray XRP Holders’ counsel as an unhinged conspiracy
theorist crusader unfairly targeting the SEC. Attorney Deaton’s criticism of the former leadership of the SEC is mostly based on the media’s reporting regarding troubling discoveries of conflicts of interests, self-dealings and personal gain regarding former Director of
Corporation and Finance William Hinman, who declared Ether as a non-security while being paid millions of dollars while at the SEC from his law firm (a member of the Ethereum Alliance); and, former Chairman Clayton, who declared Bitcoin and Ether as non-securities while directing
a suit, in essence, against its competitor, XRP, on his last [day] at the SEC, later accepting a job at a hedge fund that invested $1 billion in Bitcoin and Ether shortly before the lawsuit against Ripple and XRP. See Deaton Decl. Ex. A Media Criticism of SEC Leadership.
Regardless of whether there was wrong-doing, XRP Holders became outraged. Attorney Deaton explained that issues of sovereign and qualified immunity could result in the inability for any party to depose the prior SEC leadership. After witnessing XRP Holders’ disappointment and
feelings of injustice, Attorney Deaton attempted to provide a satirical humorous exaggerated mock cross examination of former Chairman Clayton, incorporating special effects and humorous scenes from the iconic lawyer movie, My Cousin Vinny.

For the SEC to use the above scenario
and imply or suggest that Attorney Deaton was promoting violence or drug use is sad and pathetic. It is a clear attempt to cast Attorney Deaton in the most unfavorable light, hoping that it will have a negative impact on the motion to intervene.”

Just so we are clear, the
alleged violence the SEC is referencing that I have promoted against its staff are as follows:
1) a tweet where I am using punching a “bully” (not an innocent) in the face as a metaphor of fighting back against tyranny and my motion to intervene is the “punch” in the face; and
2) a pretend exaggerated satirical mock cross examination of Jay Clayton using special effects and cut outs of a popular movie (see below 👇) where I jokingly say “if you say that again, I may have to slap the shit out of you.”

By the way, @sprwn and the #SEC for that matter, are you aware that YouTube has a policy against the promotion of violence and if you actually promote violence they will remove your content or slap a warning on your video?

YouTube has never taken any action related to my video.
Because to claim that I was actually promoting or inciting violence against members of the SEC, past or present, is utterly absurd and pathetic. Watch it for yourself.

After watching it, you might have a valid criticism that it’s not funny or entertaining, but to argue that I’m
promoting violence and drug use in this video is pure desperation.

Finally @sprwn, you might want to hesitate relying on the SEC as your source. Free legal advice: Maybe instead of defaming me (when I’m not even involved), you think about this:

What happens with Flare and the
Token if the SEC wins the case and today’s #XRP is declared a security?

If today’s #XRP is a security and the Spark token derives from #XRP, what’s that make the Spark token?

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More from @JohnEDeaton1

14 Jun
Months ago I tweeted that the most important decision a prosecutor makes is at the beginning of a case when he decides what charges to file.

I predicted that the decision to charge @bgarlinghouse and @chrislarsensf with aiding and abetting would come back to haunt the @SEC_News.
The SEC charged the two executives with reckless conduct for the entirety of their tenures working at @Ripple.

What that means is that the SEC must prove that Brad and Chris actually believed #XRP was a security or it was reckless for them not to realize #XRP was a security.
When determining recklessness the court looks to what an objective person would believe under the circumstances.

What Ripple is arguing here is that if at any point during the last 8 years the SEC failed to classify #XRP as a security in connection with their own policies,
Read 12 tweets
8 Jun
AND WHAT IS THE LAW:

“Cryptocurrencies (sometimes called tokens or digital assets) are a lawful means of storing or transferring value and may fluctuate in value as any commodity would. In the abstract, an investment of money in a cryptocurrency utilized by members of a
decentralized community connected via blockchain technology, which itself is administered by this community of users rather than by a common enterprise, is not likely to be deemed a security under the familiar test laid out in S.E.C. v. W.J. Howey Co.”

-Judge Castel (Telegram-1)
Judge Castel also made clear:

“the security in this case is not simply the Gram, which is little more than alphanumeric cryptographic sequence. Howey refers to an investment contract, i.e. a security, as ‘a contract, transaction or scheme’,”

- J. Castel (quoting Howey)
Read 6 tweets
8 Jun
A partial historical review of @SEC_News 🆚 @Ripple:

The SEC waited 8 years to bring a case against @Ripple allowing individual investors to buy #XRP on over 200 exchanges worldwide.

In 2015 the DOJ and #FinCEN declare #XRP a convertible virtual currency.
In 2017 when the SEC aggressively sued companies in the digital asset space violating securities laws, it left Ripple and #XRP alone.

In 2018, the SEC allowed Ripple to purchase a 9% stake in @MoneyGram fulling knowing #XRP would be transferred to MG who would in turn
immediately sell it in the secondary market on exchanges like @coinbase to individual investors with no connection to or even knowledge of the company Ripple.

After more than a 2 year investigation into Ripple and it’s executives, the SEC could not find one instance of fraud or
Read 12 tweets
5 May
#XRPHolders:

I have more than a few DMs from people asking whether it’s possible that if we are successful in a motion to intervene and then lose the underlying case if sanctions would be ordered against #XRPHolders.

First, there are currently 6 named proposed intervenors.
I have alleged, along with those 6 named intervenors “and all others similarly situated.”

The 17,000sh people that have signed up to join are not officially in the case. The 6 named intervenors are not yet in the case for that matter. I have informed the Court that I represent a
putative class of 12k plus (it has grown since then). If we win the motion to intervene then that doesn’t mean everyone that signed up is a defendant in the case. In order to be a defendant in the case the judge would have to certify a class (ie “class action”). Before she did
Read 9 tweets
11 Apr
#XRP AND #EXCHANGES

I hope to be proven wrong but as I’ve said before I do not believe that @coinbase @krakenfx @binance etc. are going to re-list or un-suspend #XRP until the @SEC_Enforcement comes out and issues a no-action declaration or we get clarity from the SDNY Court.
Let me explain how the SEC Attorney misled the Court when answering Judge Netburn’s question regarding whether anyone selling #XRP would be violating Section 5 of the Securities Act.

This will also help me prepare for our brief (due in 8 days). 😥😫

Attorney Tenreiro said that
Section 4 exemptions would apply and therefore retail holders would not be in violation. Not true. If the purpose and intent is to have #XRP distributed by purchasers into a secondary market no exemption applies under Section 4, as Tenreiro suggested to Magistrate Netburn.
Read 9 tweets
9 Apr
#XRPHolders 🆚 @SEC_News Thread:

@HesterPeirce was interviewed by @ThinkingCrypto1 and said that she was trying to get people at the @SEC_News to stop thinking about the token as a security but instead on how the token was being packaged and sold.
I tweeted out, in disbelief, saying “that’s only been the law for 75 years.”

The Supreme Court in #Howey didn’t conclude that the oranges 🍊 were Securities, but it was the “scheme” and the totality of circumstances surrounding the transactions between the parties that was held
to be an investment contract. But it’s not just the #Howey case that has made it crystal clear that the token itself IS NOT a security.

#BTC, #ETH, #XRP, #Gold, #Soybeans, #copper, #coffee and any other product or commodity can be marketed, packaged, sold and distributed
Read 18 tweets

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